GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES POLICY

2 · 0 It is clarified that refund claims in respect of zero-rated supplies and on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger shall be filed for a tax period on a monthly basis in FORM GST RFD-01A.However, in case registered persons having aggregate turnover of up to Rs1.5 crore in the preceding financial year or the current financial year are opting to file FORM GSTR-l quarterly (notification No. 57/2017—State Tax dated 12.12.2017 refers), such persons shall apply for refund on a quarterly basis. Further, it is stated that the refund claim for a tax period may be filed only afier filing the details in FORM GSTR-l for the said tax period. It is also to be ensured that a valid return in FORM GSTR-3B has been filed for

3 · 0 In case of refund claim arising due to inverted duty structure, the following statements -Statement 1 and Statement 1A of FORM GST RFD-01A have to be filled:-

4 · 0 Whereas, the Government has issued notification No. 48/2017- State Tax dated 23.11..2017 under section 147 of the DGST Act wherein certain supplies of goods have been notified as deemed export. Further, the third proviso to rule 89(1) of the DGST Rules allows the recipient or the supplier to apply for refund of tax paid on such deemed export supplies. In case such refund is sought by the supplier of deemed export supplies, the documentary evidences as specified in notification No. 49/2017State Tax dated 23.11.2017 are also required to be furnished which includes an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him. The undertaking should be submitted manually along with the refund claim. Similarly, in case the refund is filed by the recipient of deemed export supplies, an undertaking by the supplier of deemed export supplies that he shall not claim the refund in respect of such supplies is also required to be furnished manually. The procedure regarding procurement of supplies of goods from DTA by Export Oriented Unit (EOU) / Electronic Hardware Technology Park (EHTP) Unit / Software Technology Park (STP) Unit / Bio-Technology Parks (BTP) Unit under deemed export as laid down in Circular No. 01/2018-GST dated H' D l ' [8 needs to be complied with.

4 · 1 Further, as per the provisions of rule 89(2)(g) of the DGST Rules, the following statement 5B of FORM GST RFD-01A is required to be furnished for claiming refund on supplies declared as deemed exports:-

5 · 0 It may be noted that to locate jurisdictional proper officer, order no F3(79)/Policy-GST/2017/Pt 2/1240-48 dated 22.12.2017 is required to be referred to. Where any amount claimed as refund is rejected under rule 92 of the DGST Rules, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST RFD-1B until the FORM GST PMT-03 is available on the common portal. Further, the payment of the sanctioned refund amount shall be made only by the respective tax authority ofthe Central or State Government. Thus, the refund order issued either by the Central tax authority or the State tax/UT tax authority shall be communicated to the concerned counter-part tax authority within seven working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be. This time limit of seven working days is also applicable to refund claims in respect of zero-rated supplies being processed as per Circular No. 02/2018-GST dated "'0' ' '8 as against the time limit of three days prescribed in para 4 of the said Circular. It must be ensured that the timelines specified under section 54(7) and rule 91(2) of the DGST Rules for the sanction ofrefund are adhered to.

6 · 0 In order to facilitate sanction ofrefund amount of central tax and State tax by the y

7 · 0 In case of refund claim for the balance amount in the electronic cash ledger, upon filing of FORM GST RFD-01A as per the procedure laid down in para 2.4 of Circular No. 02/2018 -GST dated '1 '0' ' la, the amount of refund claimed shall get debited in the electronic cash ledger.

8 · 0 It is also clarified that the drawback of all taxes under GST (Central Tax, Integrated Tax, State/Union Territory Tax) should not have been availed while claiming refund of accumulated ITC under section 54(3)(ii) of the DGST Act. A declaration to this effect forms part ofFORM GST RFD-01A as well.

9 · 0 It is requested that suitable trade notices may be issued to publicize the contents ofthis circular.

10 · 0 Difficulty, if any, in implementation of the above instructions may please be brought to the notice ofthe Policy Branch.